Assessment of the Jones Act Waiver Process on Freight Transportation Networks Experiencing Disruption

Abstract

In October 2012, Hurricane Sandy caused massive disruption and destruction to the Mid-Atlantic region of the United States. The intensity of the storm forced the Port of New York and New Jersey to close, forcing cargo diversion to the Port of Norfolk in Virginia. Because of the Jones Act restriction on foreign vessels moving between U.S. ports, the restriction on short sea shipping was viewed as a barrier to recovery.

Much of the critical infrastructure resilience and security literature focuses on the "hardening" of physical infrastructure, but not the relationship between law, policy, and critical infrastructure. Traditional views of transportation systems do not adequately address questions of governance and behaviors that contribute to resilience. In contrast, recent development of a System of Systems framework provides a conceptual framework to study the relationship of law and policy systems to the transportation systems they govern.

Applying a System of Systems framework, this research analyzed the effect of relaxing the Jones Act on freight transportation networks experiencing a disruptive event. Using WebTRAGIS (Transportation Routing Analysis GIS), the results of the research demonstrate that relaxing the Jones Act had a marginal reduction on highway truck traffic and no change in rail traffic volume in the aftermath of a disruption. The research also analyzed the Jones Act waiver process and the barriers posed by the legal process involved in administration and review for Jones Act waivers. Recommendations on improving the waiver process include greater agency coordination and formal rulemaking to ensure certainty with the waiver process.

This research is the first in studying the impact of the Jones Act on a multimodal freight transportation network. Likewise, the use of the System of Systems framework to conceptualize the law and a critical infrastructure system such as transportation provides future opportunities for studying different sets of laws and policies on infrastructure. This research externalizes law and policy systems from the transportation systems they govern. This can provide policymakers and planners with an opportunity to understand the impact of law and policy on the infrastructure systems they govern.